As a young adult, it’s easy to overlook the importance of health insurance. After all, you’re young, healthy, and probably have a more immediate list of priorities like paying rent, student loans, or saving for a dream vacation. However, foregoing health insurance can be a costly gamble. In this article, we’ll explore why having health insurance is critical, even for young adults.
1. Cost of healthcare
Medical treatments can be expensive, and not having insurance can result in significant out-of-pocket expenses. Emergency room visits, specialist consultations, and prescription drugs can quickly snowball, leaving young adults with bills that they simply can’t afford. According to the National Institute of Health, “young adults without health insurance are more likely to have trouble paying medical bills than those who have it.”
2. Protecting your future
Even if you don’t require medical attention now, not having health insurance leaves you vulnerable in the future. Living without health insurance means relying on credit to cover medical expenses, which ultimately harms your credit score and financial future. As you grow older, you’re more likely to develop chronic medical conditions that may require ongoing treatment. Without insurance, the cost of treatment could become crippling and endanger your future.
3. Unexpected events
Unexpected medical events can happen to anyone at any age. For instance, you may be involved in an accident or develop a sudden medical emergency requiring hospitalization. It’s imperative to be prepared for the unexpected as medical bills can accumulate fast.
4. Tax penalties
In 2021, the Affordable Care Act mandates that individuals have health insurance. Failing to have health insurance results in a tax penalty. In simple terms, if you can afford health insurance but don’t obtain coverage, you’ll be subject to a tax penalty of $695 per adult (or 2.5% of your household income) in 2021.
5. Peace of mind
Lastly, having health insurance provides peace of mind. You’ve invested in your well-being, and you know you have access to medical care when you need it. This peace of mind can affect your overall life and well-being positively.
In conclusion, young adults may feel invincible and overlook the importance of health insurance, but it’s a valuable investment in your future. Even if you’re healthy today, not having health insurance can impact your life and financial situation negatively in the long run. Protect yourself from unexpected events and safeguard your future with health insurance.
